Dollar - Japanese Yen Analysis Analysis

Evening Analysis for CFD Instruments 06/12/2018

Fundamental analysis

06 December, 2018 Research Department

USD/JPY was trading 0.32% down on Thursday to test a session low of 112.593. The yen rose on Thursday after the arrest in Canada of a top executive of Chinese tech giant Huawei prompted fears of a flare-up in U.S.-China trade tensions. The arrest of Huawei Technologies Co Ltd’s chief financial officer increased safe-haven demand for the currency as doubts emerged over a truce on trade struck days ago between Presidents Donald Trump and Xi Jinping. In addition, the US dollar, however, remained under pressure by worrisome signs in U.S. bond markets about economic growth and signals from the Federal Reserve that a slowdown in the pace of interest rate hikes may be coming. In Japan, Bank of Japan Governor Haruhiko Kuroda on Thursday dismissed the chance of a near-term interest rate hike, saying that restocking the central bank’s policy ammunition now could delay the achievement of its inflation target. Later this afternoon, the US dollar should be expected to come under volatile pressure due to several economic data releases. In fact, this afternoon, ADP Nonfarm Employment Change for November, Initial Jobless Claims, Trade Balance and ISM Non- Manufacturing PMI will be released in the US.

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The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.